"Two third of our budget also goes into operational costs such as salaries and governmental operations. We have a problem with our budget planning, we need to sort it out in he next two three years."

Iraq's total 2012 budget is $112 billion.

"No budget can meet the Iraqi infrastructure needs. Investments are required," he said.

The government is also looking at increasing its oil production from 2.3 million barrels to more than 5 million barrels by 2016, Daraji said. But one thing's certain, the interest is definitely there, as Iraq is expected to lead the boom in project spending in the Middle East over the next five years.

Drake & Scull to build Basra pipeline

Abu Dhabi: Drake & Scull International said that it is in final talks for its first job in Iraq, its chief executive officer said in Abu Dhabi yesterday.

The project, a pipeline in Basra, is worth about $300 million, Khaldoun Tabari told the audience at the Arabian World Construction Summit in Abu Dhabi yesterday.

He expects the negotiations to be finalised in the next 30 days.

Drake & Scull International is also looking at opportunities in Africa, Asia, India and Sri Lanka.